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Ch.1 Intro OpM

DS 412 TEST 1

QuestionAnswer
Productivity = output/input or total rev/total costs or (P.Q)/TC
When do revenues exceed costs? Total Annual Rev= Total Annual Cost
When do revenues exceed costs2? Total Annual Revenue = Ann. Fixed Cost + Ann. Variable Cost
PQ = F + c.Q (P=price $/unit,c=Variable cost in $/unit,F=ann.fixed cost $/yr,Q=number of units produced)
Production determines: F & c
Marketing determines: P & C
Break Even Analysis (BEA) Q = F/(P-c)
When given 2 eq & costs stayed the same (looking for F & c costs) TC=F+c.Q
Make or Buy Fm + Cm*Q = Fb + Cb*Q m=make; b=buy # units needed per yr exceed BE volume (Q)?
Process Focused low volume customized products (aircraft, interior design)
Product-focused high volume standard (paper clips, tires, floppy disks)
Life cycle Introduction, growth, maturity, decline, death
Created by: victoriaoharra
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